According to western media, the financial "arsenal" kept by China Bank is huge, which is close to the German economic aggregate, more than twice that of Japan, the second largest foreign exchange reserve country in the world, and more than four times that of Switzerland.

According to a Spanish website reported on July 12, in the financial order, that is, in the daily management of any currency issuing country, foreign exchange reserves are the "beacon" for the sustainability of the national currency exchange rate.

According to the report, among the global financial regulators, most of the currencies in this currency basket are denominated in US dollars, followed by the euro. They are the two most commonly used currencies in the world. Therefore, there is no need for the United States and euro zone countries to accumulate US dollar and euro reserves.

However, for the bank vaults of other economies, especially emerging market economies, having healthy foreign exchange reserves is a manifestation of their economic security. Emerging markets have greater potential for growth and prosperity, but the risks of macroeconomic imbalance and widening income distribution gap are also higher.

According to the report, through foreign currency transactions, foreign exchange reserves are the guarantee for maintaining the stability of floating exchange rates, and are also crucial for maintaining a fixed exchange rate. In addition, they are also buffers to maintain liquidity in times of crisis, which can convince foreign investors that the central bank where their capital is deposited has the ability to take action to protect their investments.

In addition, there are three reasons to explain the importance of a country's foreign exchange reserves. First of all, it plays the role of protector in international payment. At present, in such an era of record debt levels of sovereignty, enterprises and banks, this protector is frequently called. Secondly, it can be used as capital for some industries, such as infrastructure industry. Finally, although most currencies in the currency basket of central banks are US dollars and euros, other currency reserves are gradually increasing, which helps to reduce the risk of domestic investment in the global market.

According to the report, which countries are in the leading position in global foreign exchange reserves? At the top of the list is China, whose central bank's foreign exchange reserves are equivalent to about US$ 3.2 trillion at current market prices, almost equivalent to the size of Germany, the fourth largest economy in the world. At the same time, it is more than twice the foreign exchange reserves of Japan, which ranks second. Japan has a foreign exchange reserve of 1.2 trillion US dollars, but the yen reserve has been greatly reduced, because Japan is a super exporter, and the annual export of products made in Japan exceeds 605 billion US dollars, almost all of which are denominated in US dollars and euros.

According to the report, China's foreign exchange reserves are more than four times that of the Swiss National Bank. Switzerland is regarded as a financial paradise in the world, and the Swiss franc is a symbol of exchange rate stability. Switzerland's foreign exchange reserves exceed $785.7 billion. Switzerland's failure to join the EU is also a strategy to attract investment, which can keep away from the turmoil in the euro market. According to the latest statistics of the International Monetary Fund after the first quarter of 20 18, and comparing the data provided by central banks, the economies with the largest foreign exchange reserves in the world are China, Japan, Switzerland, Saudi Arabia, China, Hongkong, China, India, South Korea, Brazil, Russia and Singapore.

The report also said that China and Japan's foreign exchange accumulation comes from product export income, while Saudi Arabia's foreign exchange income comes from oil sales. However, it is shocking that the United States is short of currency reserves, less than $44 billion, while its sovereign debt exceeds $2 1 trillion, although as the world's largest economy, the United States has excellent solvency guarantee when entering the world financial market.